International Warrants

Macquarie International Warrants are quoted on the ASX and have a term of approximately five years:

Maturing 31 October 2014:

• ZBHWMA (Underlying reference share BHP Billiton Plc)
• ZRIWMA (Underlying reference share RIO Tinto Plc)

Maturing 10 December 2014:

• ZBHWMB (Underlying reference share BHP Billiton Plc)

Macquarie International Warrants provide the opportunity for investors to potentially take advantage of any spread differentials between BHP and RIO AU and BHP and RIO UK. 

For example, a reduction in the spread may imply that, for example, BHP (UK) would rise in price relative to BHP (AU) or that BHP (AU) would fall in price relative to BHP (UK). Purchasing a Macquarie International Warrant over BHP (UK) or RIO (UK) gives investors the opportunity to gain in relation to any increase in the price of BHP (UK) or RIO (UK) (subject to movements in the applicable exchange rate).

More detailed information about DLC spreads can be provided on request.

• Receive any amount in AUD equal to the value of any dividends which occur in relation to the reference share
• Investors will not be entitled to franking credits or other foreign income tax offsets.

At maturity, Macquarie International Warrants will be physically settled which means that your investors will be entitled to receive a number of ASX securities (the deliverable shares). The deliverable shares are likely to be the ASX-listed BHP Billiton Ltd (for BHP UK warrants) and RIO Tinto Limited (for RIO UK warrants). The number of deliverable shares received will depend on the AUD equivalent of the volume weighted average price of the UK reference share on each of the five averaging days following the maturity of the warrant (final value) and the price of the AU listed deliverable share following the determination of the final value of the warrant. For example if an investor holds five BHP UK warrants worth $A20 each and BHP AU is trading at $A25, they will be delivered four BHP AU shares.

Note that investors will be provided with the opportunity to sell out of their International Warrants on market before maturity.

• You can purchase International Warrants on the ASX.

• Receive any amount in AUD equal to the value of any dividends which occur in relation to the reference share
• Potentially benefit from any gains in the value of the reference share (subject to, among other things, adverse exchange rate movements)
• May be able to be sold on the ASX on or prior to its maturity date.

• International Warrants are physically settled (which means that investors are entitled to receive a number of ASX securities from Macquarie) (the deliverable shares)
• The number of deliverable shares received will depend on the AUD equivalent of the volume weighted average price of the UK reference share on each of the five averaging days following the maturity of the warrant (final value) and the price of the AU listed deliverable share following the determination of the final value of the warrant.